Court to hear Janus appeal in securities case

The Supreme Court said on Monday that it would hear an appeal by Janus Capital Group Inc of a ruling that reinstated a class-action securities fraud lawsuit against the mutual fund company.

The lawsuit, brought on behalf of those who bought Janus stock from mid-2000 through early September 2003, alleged the prospectuses of several of the Janus Funds created the misleading impression that the company would adopt measures to curb market timing, when in fact secret arrangements with several hedge funds permitted such transactions, to the detriment of long-term investors.